Making Tax Digital for Sole Traders in Glasgow
MTD Is Live. Here Is What It Means for Your Business and How We Can Help.
Making Tax Digital for Income Tax went live in April 2026. If you are a sole trader or landlord with qualifying income over £50,000, you are now legally required to submit quarterly digital updates to HMRC through approved accounting software. One Self Assessment a year is no longer sufficient if you are in scope.
At 1341 Accountancy, we help sole traders in Glasgow and across the UK understand exactly what MTD means for their situation, get set up on the right approved software, and manage the quarterly submission process accurately and on time — so you can focus on running your business.
Making Tax Digital Does Not Have to Be Complicated
For many sole traders, the idea of submitting quarterly updates to HMRC sounds daunting. The reality is more manageable than it sounds — but only if you have the right software in place and your records are being kept properly throughout the year. Without those two things, MTD compliance is genuinely difficult
We take care of the complicated parts. From assessing whether MTD applies to your income level, to setting up your approved software, organising your digital records, and submitting your quarterly updates on your behalf — we make the entire process as straightforward as possible.
Why Sole Traders Choose 1341 Accountancy for MTD Support
Making Tax Digital introduces a new layer of responsibility for sole traders. Instead of thinking about your tax position once a year in January, you are now managing it throughout the year in quarterly steps. With the right support in place, this is actually an opportunity to have a much clearer, more current picture of your finances.
We make the process clearer and easier to manage from day one. We assess your position, set up your software correctly, and handle your quarterly submissions on your behalf throughout the year. You do not have to navigate HMRC’s requirements alone — and you do not have to become an expert in digital accounting software to stay compliant.
MTD Guidance
We explain exactly what Making Tax Digital means for your specific situation — your income level, your software requirements, your quarterly deadlines, and what you need to do first.
Digital Record Keeping
We help you set up and maintain the kind of digital records HMRC requires. Organised records throughout the year make every quarterly submission accurate and straightforward.
Software Support
We set up your MTD-compatible software — QuickBooks, or FreeAgent — configure it correctly for your business, and make sure you are comfortable using it. Approved software is mandatory. HMRC's own website cannot be used for MTD submissions.
Ongoing Support
From your first quarterly update to your Final Declaration at year end, we are available throughout the year to make sure every submission is accurate, on time, and properly handled.
Why Getting MTD Right Matters
Making Tax Digital for Income Tax fundamentally changes how sole traders report their income to HMRC. Instead of one annual Self Assessment in January, you are now required to submit four quarterly updates throughout the year, followed by a Final Declaration that replaces the traditional tax return.
Getting this right from the start matters. If your records are not kept digitally throughout the year, you cannot submit accurate quarterly updates. If your software is not MTD-approved, HMRC will not accept your submissions. And while HMRC has confirmed a soft landing for 2026/27 — meaning no penalty points for late quarterly updates in the first year — you still have to file all four quarterly updates before you can submit your Final Declaration.
The threshold also drops. From April 2027, MTD applies to sole traders and landlords with qualifying income over £30,000. If you are approaching that figure, getting set up now is significantly easier than waiting until compliance becomes mandatory.
Getting organised early can help you:
- Keep digital financial records in a format HMRC accepts throughout the year
- Submit accurate quarterly updates before each deadline
- Understand your tax position every quarter rather than once in January
- Avoid compliance issues as the MTD threshold drops in April 2027
- Reduce the risk of HMRC penalties through correct, timely submissions
- Stay on top of your business finances with better visibility throughout the year
Our Making Tax Digital Support for Sole Traders
From your initial MTD assessment to your quarterly submissions throughout the year, we manage the process on your behalf. Our aim is to make Making Tax Digital as simple as possible — with no confusion, no missed deadlines, and no last-minute pressure.
MTD Assessment
We assess whether Making Tax Digital applies to you based on your qualifying gross income, explain exactly what the requirements mean for your situation, and tell you what you need to have in place and when.
Digital Bookkeeping
We help you set up and maintain the digital records HMRC requires throughout the year. Organised, accurate records make every quarterly submission straightforward and give you a clearer picture of your business finances in real time.
Software Support
We set up your MTD-compatible accounting software — QuickBooks, or FreeAgent — configure it correctly for your business, and ensure you know how to use it. This step is mandatory. MTD updates cannot be submitted through the HMRC website and must go through approved software.
Quarterly Update Support
We submit your quarterly updates to HMRC on your behalf, on time, every quarter. The four quarterly periods run from April to July, July to October, October to January, and January to April. We manage every deadline throughout the year.
Tax Return Support
We help you understand the relationship between your quarterly updates and your Final Declaration, make sure your overall tax position is clear before the end of the year, and handle the Final Declaration submission accurately and on time.
MTD-Compatible Accounting Software
One of the most important things to understand about Making Tax Digital is that you cannot submit quarterly updates through the HMRC website. This is not a technical issue — it is a legal requirement. MTD submissions must go through HMRC-approved accounting software. If you do not have the right software in place, you are not compliant, regardless of how well-organised your records are.
We work with the three most widely used MTD-compatible platforms: Xero, QuickBooks, and FreeAgent. We recommend the right one for your business based on your income level, your budget, and how hands-on you want to be with your own bookkeeping. FreeAgent is available free with most NatWest and Royal Bank of Scotland business accounts, which makes it a practical starting point for many sole traders.
Our support includes:
- Software setup and configuration for full MTD compliance
- Guidance on which platform suits your business — QuickBooks, or FreeAgent
- Digital records management in line with HMRC requirements
- Training and ongoing support for managing your own MTD bookkeeping
- Migration from spreadsheets or existing systems to MTD-compliant platforms
Frequently Asked Questions About Making Tax Digital for Income Tax
Does Making Tax Digital apply to every sole trader?
Not yet, but it is expanding quickly. From 6 April 2026, MTD for Income Tax applies to sole traders and landlords with qualifying gross income over £50,000 in the 2024/25 tax year. The threshold drops to £30,000 from April 2027. Qualifying income means your total gross income from self-employment and property combined — before any expenses are deducted, not your profit. If you are close to these thresholds, getting set up ahead of the mandatory date is significantly easier than making a rushed transition when compliance becomes a legal requirement.
Do quarterly updates replace my Self Assessment tax return?
Not exactly — they replace the process of collecting everything at year end, but the Self Assessment itself is replaced by a Final Declaration. Under MTD, you submit four quarterly updates throughout the year, each covering a three-month period of income and expenses. At the end of the tax year, you then submit a Final Declaration — which is broadly equivalent to the traditional Self Assessment return and is where you include any additional income sources and finalise your overall tax position. The key difference from the old system is that instead of doing everything in one go in January, you are managing your finances in smaller, more regular steps throughout the year.
Do I need accounting software for MTD?
Yes, and this is one of the most important things to understand. You cannot submit MTD quarterly updates through the HMRC website or by any manual method. Submissions must go through HMRC-approved accounting software. Approved platforms include QuickBooks, FreeAgent, and a number of other software providers. If you are in scope for MTD and do not have approved software set up, you are not compliant — regardless of how well you keep your records. We help sole traders choose the right software, get it configured correctly, and use it to stay compliant throughout the year.
Can 1341 Accountancy help me with MTD?
Yes, absolutely. We provide full Making Tax Digital support for sole traders in Glasgow and across the UK. This includes assessing whether MTD applies to your income level, recommending and setting up the right approved software, getting your digital records organised, submitting your quarterly updates to HMRC on your behalf, and handling your Final Declaration at year end. Whether you have not yet started your MTD setup or you are already in scope and behind, book a free 30-minute consultation and we will tell you exactly where you stand and what needs to happen next.
Not Sure Where to Start With MTD?
Book a free 30-minute consultation and we will assess your MTD position, explain exactly what you need to do, and handle the software setup and quarterly submissions on your behalf. No jargon, no pressure.
What Our Clients Say About MTD Support
Real feedback from sole traders we have helped get MTD-compliant.
I had absolutely no idea where to start with Making Tax Digital. They explained it clearly, got the software set up, and submitted my first quarterly update without any stress at all. Exactly the support I needed.
Sarah P, Sole Trader, Glasgow
Emma sorted my MTD setup in a single session. I was completely overwhelmed by what I thought was involved and it turned out to be much more straightforward than I expected with the right person guiding you through it
Tom H, Sole Trader, Edinburgh
I had been using spreadsheets for years and panicked when I realised they would not work for Making Tax Digital. 1341 Accountancy moved everything across to proper MTD-compliant software and the whole process is genuinely so much better now.
Lisa M, Freelancer, Glasgow
I had been ignoring Making Tax Digital for months because I did not understand what I actually needed to do. One conversation with they and it all made sense. She got everything sorted and I made my first quarterly submission without any issues at all.
Karen D, Sole Trader, Glasgow
I was using spreadsheets and thought I could carry on as normal. Emma explained why that would not work for MTD and set me up on FreeAgent in the same week. The quarterly submissions just happen now and I barely have to think about it.
Paul R, Freelance Consultant, Glasgow
My accountant at the time had not mentioned Making Tax Digital at all. I found out about the deadline through social media and panicked. 1341 Accountancy got me compliant quickly, professionally, and without making me feel bad for leaving it late. Cannot recommend them enough.
Joanne M, Sole Trader, Paisley
READY TO GET MTD SORTED?
Book Your Free 30-Minute MTD Consultation
Whether you are just hearing about Making Tax Digital for the first time or you are already in scope and need to get your software and submissions sorted quickly, we are here to help. No commitment, no jargon, no hard sell.